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2 ANZ is a leading bank in Australia, and the largest bank in New Zealand Established in 1835 Strong market positions in chosen markets Australian “Bank of the Year” six years in a row New Zealand’s largest bank Leading bank in the South Pacific Leading Australian bank in Asia Over 5 million customers, across 30 countries 34,353 employees; 1,265 points of representation Strong annual performance as at 30 September 2007 Annual profit AUD$4.2 billion Total Assets AUD$392 billion Cost/Income ratio 44.8% Rated AA

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4 The following key principles which are aligned with Basel II underpin the establishment of the ANZ risk function: 1.Board of Directors should be aware of major aspects of bank’s risks. It should approve and review the bank’s risk management framework which outlines the approach for the identification, assessment, monitoring and control / mitigation of risks. 2.Board of Directors should ensure the bank’s risk management framework is subject to effective and comprehensive internal audit by operationally independent, appropriately trained and competent staff. 3.Senior management should have responsibility for implementing the risk management framework. The framework should be consistently implemented throughout the whole banking organisation. Senior management should also have responsibility for developing policies, processes and procedures for managing risk across all of the bank’s material products, activities, processes and systems. The principles fundamentally require that Risk Management exist as an independent and centralised function. As long as Risk Management is independent and centralised, it can be organised by: –Risk type (credit, market, operational etc) or –Line of Business (Retail, SME, Corporate etc) Typically in order to be more responsive to customer needs, the Risk Management function tends to be organised by Line of Business. Refer to the Appendices for options on organisational structure.